Thanks for the information on DGFT

how the exporter will use/transfer/sale the scrip, if there were no purchases made by him ? Inter alia, he could earn or is entitled to credit in relation or proportion to goods he bought/manufactued and exported. In the case of a nil return filer, there will be no entitlement/earning of the scrip. The officer seems correct when citing section 17 (2), as scrip and goods are inter-dependent, interwoven and scrip cannot be viewed in isolation or absence of goods

Scrips are benefits provided to exporters. I can chose to not claim the scrip, but that does not mean i cannot make exports. The other way around, scrips cannot be obtained without exports. So it is a possible benefit. The credits which are related to obtaining the scrip only should be considered in my view. Exports would be there irrespective of the scrip. Similar concept would apply to most of the expenses and therefore only a few common indivisible credits would have to be considered. 

I am a manufacture of biscuits. during the FY 2018-19 I sold biscuits and paid GST as per the applicable rates. and also I sold some Maida which is exempt. now do I need to reverse ITC on other purchases like Wrapper, Sugar, Vanaspathi, etc., in accordance with Rule 42? because while purchasing maida I didn't receive ITC, because it is exempt.
 

If any inward supplies were used for making outward exempt supply, then ITC reversal is required against the same. 

If for example - sugar and vanaspathi (where GST-ITC available) is not used for making maida outward exempt supply - then ITC reversal not required against the same. 

As on today, we need to reduce itc for MEIS scriptt as per rule 42. 

You can also refer appeal order in this regards. link   https://cgstappealsjaipur.gov.in/Attachments/45040699-aacb-4a3c-a9ce-7a962bd22dd1.pdf

As on today, we need to reduce itc for MEIS scriptt as per rule 42. 

You can also refer appeal order in this regards. link   https://cgstappealsjaipur.gov.in/Attachments/45040699-aacb-4a3c-a9ce-7a962bd22dd1.pdf

As on today, we need to reduce itc for MEIS scriptt as per rule 42. 

You can also refer appeal order in this regards. link   https://cgstappealsjaipur.gov.in/Attachments/45040699-aacb-4a3c-a9ce-7a962bd22dd1.pdf

Now, let us understand the issue in a different way.  as per the definition of exempted supply, values of nil rated and non gst supplies are to be considered without considering the values declared under schedule iii.  now the gst on sale of  meis was exempted by way of notification, but not declared as schedule iii activities.  hence, they would get covered under rule 42 reversal.  another situation would be that the exporter would be claiming refund of taxes paid on export, in other words, the exporter has utilised the credit and again obtained the refund of igst which naturally includes the itc.  in such a situation, would it not amount to loss of revenue to the government by allowing the credit and not asking for reversal under rule 42 for such goods which were exported, refund claimed.